US President Donald Trump’s retaliatory tariffs on global imports are likely to speed up the shift in production by footwear giants like Nike, Puma, and Adidas to India, which now faces lower tariffs than its competitors, according to experts.
On Thursday, the Trump administration announced a flat 26% tariff on goods imported from India, with limited sectoral exemptions. In contrast, India’s competitors in non-leather footwear exports—Vietnam (46%), Cambodia (49%), Bangladesh (37%), and Indonesia (32%)—face steeper tariffs, making their products less competitive.
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Shares of Nike fell 10% to their lowest since 2017, while Adidas dropped 11% and Puma declined 10%, as the new tariffs are expected to increase sneaker prices sharply. A Reuters report citing UBS analysts noted that US retailers may need to raise prices by 10–12% to offset the impact on Vietnamese-made products alone.
In FY24, 50% of Nike’s footwear came from Vietnam while 39% of Adidas’ footwear sourcing came from the country. The average US tariff on Vietnamese footwear is currently 13.6%.
“Over the last decade, Nike, Adidas, and Puma placed big bets on Vietnam,” said an industry executive. “With the latest tariff hikes, India—particularly Tamil Nadu—is emerging as the next major hub for manufacturing.”
India’s non-leather footwear exports to the US earlier faced tariff rates of 10–12%, compared to Vietnam’s average of 13.6%. However, under the new tariff structure, Vietnam could see duties rise to as high as 60% on some non-leather footwear categories, while India’s revised tariff is expected to be around 36%. Tariffs on Chinese goods will rise 34% on top of the 20% already imposed earlier this year, bringing the total to 54%.
“All these global brands have already begun shifting production to India as part of their China+1 strategy. The new tariffs will only speed up that transition,” said J Rafiq Ahmed, executive chairman of Kothari Industrial Corp. Ltd (KICL).
To be sure, Tamil Nadu is already a key player in non-leather footwear manufacturing for global brands including Nike, Puma, Crocs, Adidas, and Reebok. Non-leather footwear accounts for 86% of global usage. Taiwanese contract manufacturers such as Feng Tay, Shoe Town, Pou Chen Corp, and Hong Fu have either set up or are in the process of establishing facilities in Tamil Nadu,
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